Entain plc (ENT) AI Stock Analysis

• Market Cap: £5.51B
• Dividend Yield: 1.93%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: 5.14%
• EPS Growth: -7.80%
• Country: UK
• Employees: 19,272
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.31
• Shares Outstanding: 639,544,560
• 10 Day Avg. Volume: 1,262,689
• 30 Day Avg. Volume: 1,397,049
• PEG Ratio: 0.18
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 15.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,142.70
• Price Target Upside: 32.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 56 Neutral
• Price Target: 892.00p ▲(3.55% Upside)

Entain plc's overall score is primarily impacted by its strong revenue growth and cash flow management, but is significantly hindered by profitability challenges and high leverage. Technical indicators suggest bearish momentum, and valuation is affected by negative earnings.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion and market position.

Cash Flow Management

Effective cash flow management ensures liquidity and financial stability, allowing the company to invest in growth opportunities and weather economic fluctuations.

Gross Profit Margin

A strong gross profit margin reflects operational efficiency and pricing power, which are crucial for sustaining profitability and competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and respond to market changes, affecting long-term stability.

Negative Profit Margin

Negative profit margins indicate underlying cost issues or pricing pressures, which can hinder sustainable profitability and shareholder returns if not addressed.

Negative Return on Equity

Negative ROE suggests inefficiency in generating returns on shareholder investments, which can deter investors and impact long-term capital raising capabilities.

Entain plc Business Overview & Revenue Model

Company Description

Entain PLC operates as a sports-betting and gaming company. The company provides online betting, casino, poker, and bingo services through mobile and web under the bwin; online and multi-channel betting under the Ladbrokes; street and online betting under the Coral; sports betting, casino, game, and poker under the Sportingbet; online bingo, sportsbook, casino, and poker access under the Betboo; and sports betting, poker, and casino games under the Crystalbet brands, as well as Gamebookers, a full-service sportsbook. It also offers software and technology for race book and sportsbook under the Stadium; online sports betting, casino, and gaming under the Eurobet; sports action and horse racing under the Neds; online bingo under the Gala Bingo; casino and live casino under the Gala Casino; virtual sports under the AGT brands, as well as partypoker, which provides online poker; PartyCasino that provides online casino; and Gala Spins, a gaming application. In addition, the company provides Foxy Bingo that provides online bingo; Foxy Games, which offers slot games, jackpots, and various table games; casino and live casino games under the Casino Las Vegas brand; playtech casino under the Casino King brand; Ladbrokes.be, a shop and newsagent outlet; Ladbrokes.com.au, an online betting site; online betting and gaming under the Optibet; online casino and betting under the NinjaCasino brand; gender-neutral mobile-first casino and bingo under the Laimz brand; online sports, casino, and poker under the BetMGM brand; online sports and gaming under the Borgata brand; and Danske Spil that provides online gaming. Further, it operates an online casino website for German-speaking markets under the CasinoClub brand; Gioco Digitale, a gaming site; and Cheeky Bingo, a bingo platform. Additionally, the company offers PMU that offers online poker; betting in the shop estates; and telephone betting services. Entain PLC was founded in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Entain plc generates revenue primarily through its online gaming and sports betting operations. The company's revenue model is based on a combination of transaction fees from bets placed by customers, gaming revenues from casino games, and commissions from poker and bingo activities. Key revenue streams include sports betting, which contributes significantly to overall earnings, as well as online casino revenues from slot and table games. The company also benefits from partnerships with various payment processors and technology providers, enhancing its service offerings. Additionally, Entain has entered into strategic partnerships and joint ventures with other gaming and entertainment companies, expanding its market reach and enhancing its product portfolio, which further contributes to its financial performance.

Entain plc Financial Statement Overview

Summary

Entain plc exhibits robust revenue growth and strong cash flow management, but faces significant challenges with profitability and leverage. The high revenue growth is offset by negative net margins and substantial debt levels, which could impact long-term sustainability.

Income Statement

Entain plc has shown a consistent increase in revenue over the years, with a notable Revenue Growth Rate of 6.70% in 2024. However, the company is currently facing profitability challenges with a negative Net Profit Margin of -8.90% in 2024, largely due to a negative EBIT of -250.1 million, resulting in a negative EBIT Margin of -4.91%. The Gross Profit Margin remains strong at 61.26%, indicating efficient core operations despite the bottom-line struggles.

Balance Sheet

The balance sheet highlights a high Debt-to-Equity Ratio of 2.56 in 2024, suggesting significant leverage which could pose a risk in a volatile industry. The Return on Equity is negative at -29.29%, reflecting net losses. Despite these challenges, the Equity Ratio is 15.24%, showing that a portion of the assets is financed through equity.

Cash Flow

Entain plc has demonstrated strong cash flow management with a positive Free Cash Flow Growth Rate of 49.87% in 2024. The Operating Cash Flow to Net Income Ratio is healthy at 1.28, indicating good cash generation relative to net losses. The Free Cash Flow to Net Income Ratio of -0.62 highlights the company's ability to maintain liquidity despite negative earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16B	5.09B	4.77B	4.30B	3.83B	3.56B
Gross Profit	2.55B	3.12B	2.35B	2.36B	2.07B	1.76B
EBITDA	437.00M	554.70M	-1.80M	741.00M	1.00B	857.00M
Net Income	-507.80M	-452.70M	-928.60M	24.20M	249.30M	57.80M
Balance Sheet
Total Assets	9.95B	10.14B	10.85B	8.74B	7.25B	7.27B
Cash, Cash Equivalents and Short-Term Investments	447.30M	390.60M	400.60M	658.50M	487.10M	706.70M
Total Debt	3.76B	3.96B	3.63B	3.39B	2.58B	2.44B
Total Liabilities	8.04B	8.12B	8.06B	5.42B	4.08B	4.19B
Stockholders Equity	1.45B	1.55B	2.27B	3.13B	3.17B	3.03B
Cash Flow
Free Cash Flow	472.10M	281.00M	187.50M	431.80M	455.60M	546.10M
Operating Cash Flow	579.20M	579.30M	448.10M	643.80M	631.80M	710.30M
Investing Cash Flow	-338.50M	-316.50M	-1.52B	-921.50M	-849.30M	-243.90M
Financing Cash Flow	-500.70M	-58.70M	829.30M	442.30M	-30.40M	-119.70M

Entain plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 861.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENT, the sentiment is Positive. The current price of 861.4 is below the 20-day moving average (MA) of 866.89, below the 50-day MA of 911.22, and above the 200-day MA of 756.18, indicating a neutral trend. The MACD of -8.84 indicates Negative momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 43.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ENT.

Entain plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNK	72 Outperform	642.69M	13.91	0.00%	1.90%	8.26%	263.36%
PTEC	68 Neutral	1.09B	11.29	12.29%	―	0.00%	0.00%
GMR	63 Neutral	135.08M	16.55	26.04%	―	21.27%	21.93%
ENT	56 Neutral	£5.51B	―	-28.60%	1.93%	5.14%	-7.80%
EVOK	49 Neutral	238.03M	-2.10	164.95%	―	5.26%	32.20%
CMX	49 Neutral	10.95M	-12.38	0.00%	7.62%	0.00%	-128.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Entain plc Corporate Events

Entain Announces Share Transactions by Eminence Capital

Entain plc announced that Eminence Capital, LP, a person closely associated with a non-executive director of the company, conducted a portfolio rebalancing transaction involving the sale and purchase of 1,059,998 ordinary shares. These transactions were executed as cross transactions between Eminence’s funds and accounts, resulting in no change to the aggregate holding of shares managed by Eminence Capital. This announcement highlights Entain’s adherence to regulatory requirements and transparency in its financial dealings, ensuring stakeholders are informed of significant managerial transactions.

The most recent analyst rating on (GB:ENT) stock is a Buy with a £13.10 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Entain plc Reports Strong H1 2025 Results, Upgrades FY25 Guidance

Entain plc reported strong interim results for the first half of 2025, with total group net gaming revenue up by 7% and a significant contribution from its joint venture, BetMGM, which saw a 35% increase in net revenue. The company’s online segment performed particularly well, with notable growth in the UK and Ireland, while the retail segment remained stable. The positive performance has led to an upgraded full-year guidance, with expectations of continued growth in EBITDA and net gaming revenue. The company also announced new leadership appointments to ensure strategic continuity.

The most recent analyst rating on (GB:ENT) stock is a Buy with a £8.00 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.